1.0 INTRODUCTIONLand tax is the tax payable by the land owner to the state authority through the land office. In Islamic economics, land tax is called kharaj. According to Johari and Ibrahim (2010), “kharaj means income, taxes, rents, rates, leases, products, income, salaries, etc. received from the land that Muslim jurists call kharaj land.” Al-kharaj is an Arabic word originating from Greek and used in Rome, ancient Greek and Byzantine, meaning tax. Kharaj refers to land tax in Islamic history. Imam Abu Obaid said that agricultural tax received from non-Muslim owners of land is also kharaj. In Malaysia, property tax must be paid in full from January 1 each year and will be overdue on June 1 each year. Property tax must be paid once a year to the state authority. The annual tax rate calculated based on the area of ​​the land (in square meters), real terms, categories and classes of land. Property tax payment can be made online and manually. Payment of property tax online will benefit from a 5% reduction. The percentage of online tax collection in Melaka increased and vice versa for manual collection from April to August 2013. In April, the percentage of online assessment fee realization is 0.27% and continued to increase up to 1.19% in August while the percentage of manual collection of property taxes in April was further reduced to 99.73% and 98.81% in August (Pejabat Tanah dan Galian Negeri Melaka, n.d. ). The Kharaj imposed by the first Muslims on the authorities of the Koran. Then, this tax called Al-kharaj and fixed either per unit of land in the form of cash, or share of the harvest in kind. These lands were surveyed and kharaj was imposed according to the rates fixed per unit of land on different categories of crops. For HR & Widiastuti, ...... middle of article ...... (pp. 18-28).Johari F. (2010). The dynamism in the implementation of Al-Kharaj during the Islamic regime (634-785AD). Jurnal Syariah, Jil. 18, Bill. 3 (2010) 629-658.Laman Web Rasmi Pejabat Tanah and Galian Negeri Melaka- Kalkulator Kadar Cukai Tanah Setahun. Retrieved October 4, 2013 from http://ptg.melaka.gov.my/main/kadarcukaitanah.phpLaman Web Rasmi Pihak Berkuasa Tempatan Taman Perindustrian Hi-Tech Kulim. Retrieved October 4, 2013 from http://www.pbttphtk.gov.my/faq_2Nezhad MZ (nd). Tribute (Kharaj) as a land tax in Islam. International Journal of Islamic Financial Services, Vol.5, No.1.Orhanlu, C. (1990). Kharaj in Ottoman Türkiye in Encyclopedia of Islam. Leiden – New York, EJ Brill, new edition, Vol. IV, pp.1053-1055.Salasal SMM (1998). The concept of land ownership: Islamic perspective. Geoinformasi Bulletin, Jilid 2, (p. 285-304).